Experian - How they view you

The_Boss

matttye wrote: »

Yep it should be made very clear it's a rough guide only.

Experian, being a credit reference agency, is bound to have insights into what lenders often look at when deciding whether to lend to people, but they are not a lender and they provide a credit score in the absence of information such as whether or not you have a job, how much you earn, how much savings you have etc.

Yep agreed. Another example is somone on the DFW board yesterday saying they have an excellent credit score...but then subsequently reveal they are unemployed and on benefit...

matttye

You-kip wrote: »

Credit reports are for how people manage their credit products not how much savings ones got.

Experian do gerenerate credit scores for lenders just not the same as the ones consumers get sold.

I know this, I'm just saying that lenders take those other factors into account too.

You-kip

matttye wrote: »

I know this, I'm just saying that lenders take those other factors into account too.

But they don't take savings in so what are you trying to say?

matttye

You-kip wrote: »

But they don't take savings in so what are you trying to say?

If you applied for credit with the same bank you have savings with they would have access to that data. How can you possibly know they don't take that into account?

Thrugelmir

The_Boss wrote: »

But these triggers you talk about - e.g. a default - in some instances based on people on here, some individuals with defaults have a 'good' Experian score whereas to a lender that might exclude them or be heavily weighted against then (as the process is always going to be weighted to some extent depending on lender criteria).

Lenders set their own criteria based on commercial decisions. Risk is priced. HSBC is a conservative lender. It targets a specific segment of the mortgage market for example. Hence it's below average lending rates.

bigadaj

If you have savings with a bank and ask for a loan then the savings will form a part of the decision. An ideal scenario for the bank if you think about it, immediate arbitrage treating the individual as a mug, being that the rate on the loan will be significantly above that on the savings.

anoncol

bigadaj wrote: »

If you have savings with a bank and ask for a loan then the savings will form a part of the decision. An ideal scenario for the bank if you think about it, immediate arbitrage treating the individual as a mug, being that the rate on the loan will be significantly above that on the savings.

Is that the same as a credit card? Because they might not make a penny from the client using the credit card if they pay off the balance every month but actually gain more from keeping the money in their current account for a month longer. Its exactly why i have a santander 123 credit card.

bigadaj

anoncol wrote: »

Is that the same as a credit card? Because they might not make a penny from the client using the credit card if they pay off the balance every month but actually gain more from keeping the money in their current account for a month longer. Its exactly why i have a santander 123 credit card.

Sort of. However with credit cards banks tend to make most of their money from fees charged to retailers rather than from Internet charged to cardholders.

Thrugelmir

You-kip wrote: »

What???

When you walk into your bank and ask for loan the advisor will put your application through a CRA with details you've put on your application or it will be done on account conduct or internal scoring.

Both.

If you've saved with the institution even better. The more the lender knows about you. The lower the risk you present.

gneiss_2

I started to sign up for a free trail from CreditExpert, got as far as entering my email address and then decided against it, closed the web page and switch the laptop off, today I have received an email from them asking me to complete my membership.
How did they know that I had even attempted to sign up when I didn't send them anything?? Does it mean that they collect data off your computer without telling you if you go to their website??